Active Investors Seeking Long-term Partners

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Active Investors Seeking Long-term Partners

Kevin Yoo
San Diego, CA · Member since 2008 · 301 posts · 108 votes

Hi BP community. My partners and I are looking for a classic “boots on the ground” partnership. After several years of investing we have found that although there are plenty of great investor markets, it is ultimately solid partnerships that provide sustained investment opportunities.

EAC Group primarily invests in four US markets – Jacksonville, NC, Birmingham, AL, St. Louis, MO, and South Bend, IN. Although these markets all have their own sets of challenges and opportunities, EAC Group has chosen them because of one critical element they all share – an extremely reliable local team of contractors, wholesalers, attorneys, and real estate agents with whom we partner on all of our projects. We have spent years vetting these teams and building solid relationships based on a shared focus toward the long-term vision of our business plans in each specific market.

Our Needs

Our goal is to carefully vet potential ground partners in various US markets and structure partnerships that produce profitable investment opportunities. We are currently looking for Class A, B & C properties to buy and hold as well as solid fix and flip deals of both single family and multifamily homes.

Company Profile

EAC, LP is a California based Limited Partnership for real estate investments managed by two principals Kevin Yoo and John Hostetler. This company is 4 years old and is growing rapidly. Kevin Yoo is an actively practicing Neurosurgeon in San Diego, CA. He has been investing in real estate for over 14 years and has learned, from hard knocks, what a good partner is and what a good deal looks like. He has bought and sold multiple homes and currently owns a portfolio of rental properties throughout the country.

John Hostetler is currently the “workhorse” for EAC Group Investments and has been investing in real estate for 3+ years. His background is in accounting and he held a position of controller for a large company in San Diego before coming over to manage EAC full time. EAC Group has also built a reliable, well-funded private investor network, comprising approximately 20 individuals looking to diversify their holdings into the world of real estate. We have raised over $3 million in private funding in the past two years, with opportunities ranging from short-term (3-6 months) flip project paying 18-24% annual returns to medium-term (2-3 years) buy/hold projects paying 10-15% annually. We strive to structure safe investments with the highest returns possible to our investors, while building our own portfolio of rental properties to fulfill our long-term passive cash-flow goals.

EAC Group currently holds a total of 39 rental units, with several more in escrow to purchase, and also have seven properties in various states of rehab for retail sale, and is actively pursuing more. Please feel free to contact us using the information below. We would be happy to share more about our company and its plans with you.

John Hostetler, COO [email protected] 760-519-4152

Kevin Yoo, M.D., CEO [email protected] 858-449-9847

Isaac Guzman, [email protected] 619-451-5473 

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Bob Green
Lender · Mokena, IL · Member since 2014 · 1k+ posts · 261 votes
11y

Greetings John,

I am a asset based lender, which means we evaluate the cash flow of the property rather than personal debts - No tax returns required - Bank rates/terms

This type of financing we offer is for acquisition of turn key properties or refinancing to improve cash flow, convert loans to better rate/terms or unleash equity to buy additional properties. It is not used as a rehab loan though. If a rehab is required, I would use hard money or cash and then refinance with us after owning for 90 days. In this scenario, you would be able to cash out up to 75% of the fair market value and leverage the equity for your next property. This is a program for investors who plan on a buy/hold strategy, also.

The main difference's between us and a traditional bank.

1. We offer 10 year fixed rate/ 30 year amortizations. In general, banks only lend up to 5yr/20 amortizations

2. We offer non-recourse loans - Banks only recourse

3. We do not require tax returns and do not look at your personal debts. We only care about the cash flow of the property - With banking, there is something called global debt service ratio that can kill a deal very quickly because personal debts are counted against you.

4. We allow 90 day value seasoning from the day you close. This will allow you to cash out based on fair market value with out waiting 12 months, therefore leveraging the equity to buy more property sooner than later - Most banks will not allow you to leverage the equity until property is owned for 12 months

5. We do not care how many properties you own, we can finance as many as you would us like to.

6. Minimum FICO 660 - Most banks 700 and higher

7. Cash out for anything - Most banks want to know where the cash is going to be spent

8. Minimum Debt Service ratio 1.2% NO Global Debt Service Ratio. We only look at the asset- Traditional banking count personal debts against you

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  • Kevin Yoo
    OP
    San Diego, CA · Member since 2008 · 301 posts · 108 votes
    11y

    @Jay Hinrichs

    I am glad you asked me how we did with our original post in December of 2014 on finding new Ground Partners. I have been meaning to post my progress or lack thereof. 

    We got a lot of interest and I talked to many many people from BP. But so far, I have not bought one property with any of them. Many of the contacts were very excited and we had great conversations and then they simply disappeared. 

    Initially, the problem was we really did not have in writing what kind of properties we wanted to buy. So, I spent hours putting together the following documents and posted them recently. I then got more inquiries but interestingly no one seemed to read what I wrote.

    Here are the links again.  

    https://www.dropbox.com/s/r08lxslk8gh0440/Portfoli...

    https://www.dropbox.com/s/msd9j8x2ogettgi/Portfoli...

    https://www.dropbox.com/s/aeigey7pe64cp3f/Rental%2...

    You can also read the first document at our website www.EACInvestments.com.

    So, we are still looking for Ground Partners and we will always be looking for talent. I should have known that finding a Partner is like finding a good property. You have to kiss a hundred frogs before you find a prince. 

    Currently we have two maybe three outstanding ground partners in Jacksonville, North Carolina, South Bend, Indiana, and St. Louis, Missouri. And even with only three Ground Partners we are buying about one residential property a week. We want to ramp that up to about 2 - 3 properties a week because at this time, we do not have enough deals to deploy all of our Investor's money. We have just begun refinancing on our first tranche of $1M portfolio after which we will again have a great deal of money that needs to be deployed again.

    Please read our documents carefully. We are a Community of Real Estate Investors whose primary goal is to create wealth for all of us. Our proposal for potential Ground Partners is to create wealth for them in 3 ways. 1. Wholesale fee up front. 2. Passive cash flow during the ownership of the property. 3. Equity to be paid out at time of cash out refi or final sale of property. It is really a unique and promising proposal. We insist you talk to our current Ground Partners so that you can do your due diligence on us.

    I noticed that you are a turnkey company. I have to warn you that we have been contacted by several turnkey companies and we simply cannot buy turnkey properties. We are opportunistic investors and we create value in a property for ourselves and our Ground Partners by buying them at a discount and rehabbing them with our Partner. We are currently in discussion with a turnkey operator in Ohio to see if we could do that with him there outside of his turnkey program. But if we buy a property turnkey with all the rehab done at close to retail price, we have no room to create wealth with that property. Anyhow, if you read what we have and would like to work with us, we would be more than glad to meet with you.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Kevin Yoo

      I am NOT a turn key company I am what YOU want to be... I bought 350 homes from 2011 to 2013 then sold out and cashed in... I fund ground teams in 15 states like what your attempting to do.. and have been doing this for over 20 years.. My volume is 10 times yours as well as my capital ...

    I posted as I thought I might be able to help you achieve what your looking to do since its all I do and have done for years.

    Your on the right track though I can tell you that much... Although BP is full of as you have discovered wanna bee's and newbies that really are not ready to step up to be a ground partner... and the one's that are good in a market usually don't need someone like you as they have me  :) 

     I speak at FIBI events in LA often so I am down that way or if your even in PDX look me up or if you would like to have a consultation with me happy to talk on the phone.. I will try to open your links again the last time they did not work.. and if you like I can give you feedback  let me know.

    What Brie Schmidt and I created and what your confusing is a webstie for Turnkey Operators to post their inventory and for those investors looking to buy turn key they can go to our site see real opportunities and compare them side by side and then leave a review of any company they like or thinks needs some improvement.. And its totally free..

    Podcast Guest on Show #222
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    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Kevin Yoo

      went to your website I see your partnered with Mr. Hostetler,, we have already had a few conversations etc... so looks like your in good hands. good luck on your venture.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
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  • Kevin Yoo
    OP
    San Diego, CA · Member since 2008 · 301 posts · 108 votes
    11y

    @Jay Hinrichs

    You ARE what we aspire to be. I appreciate you reaching out to me and trying to help. 

    John Hostetler is the work horse of our real estate company and I do agree that we are in good hands. Come to think of it, John has mentioned you before.

    I also visited and signed up on your Turkey-Reviews.com website. I also know Brie Schmidt and just received an email from her yesterday wanting to do deals with us now. I am very much hoping she could be one of our Ground Partners.

    It would be great if you could talk to my EAC Community in our next meeting. Can you talk with us 11 AM this Tuesday in our weekly meeting? I am certain we could learn a lot from you.

    Lastly, I hope you did not take all the good Ground Partners or we are SOL!

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Kevin Yoo

      I have flight training ( biannual flight review Tuesday) along with IFR currency flight. Happy to catch the next one though.

    Brie Schmidt is the real deal... if you can work a deal with her you will have landed a good one that could be nice long term partner.

    exciting time to be in the business unlike someone like myself who had to fight through the carnage of 08 09  all you folks starting post 2010 have great opportunities . and now that credit is losing up.. there is real opps for really good leverage.

    Like I said though your on the right track with your methodology.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Kevin Yoo
    OP
    San Diego, CA · Member since 2008 · 301 posts · 108 votes
    11y

    No, problem, Jay. I will send you an email to your email address to set up a time for you to talk to our Community.

    0Reply
  • Hattie Dizmond
    Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
    11y

    Mr Yoo,

    My partner & I provide "boots on the ground" services to a number of out-of-area investors looking to capitalize on the stability of the North Texas Real Estate Market and its dynamic economy.

    We have a robust service offering starting with property acquisition and continuing through rehab and make ready.

    I would enjoy speaking with you and one or more of your partners to determine if there is a synergy and the potential for a partnership.

    Regards,

    Hattie

    0Reply
  • Kevin Yoo
    OP
    San Diego, CA · Member since 2008 · 301 posts · 108 votes
    11y

    @Hattie Dizmond

    Hattie,

    Thank you for reaching out to me. You seem like the "boots on the ground" kind of team that fits our model. We currently have no holdings in Texas but this is only because we have had no one approach us to become partners. Please send me your email address and we will set up time to talk. My email address is [email protected]. 

    0Reply
  • Vince Mayer
    Wholesaler · Arnold, MO · Member since 2013 · 348 posts · 183 votes
    11y

    This sounds pretty good especially for a younger person, just starting out. Paying marketing costs is really attractive even for me at 64 years old.  

    However, it looks like the best one could do in one year would be about $40,000 if approximately 10 properties were acquired at 65% of ARV.

    One would have to acquire, rehab and manage the properties, which would not be part time. The wholesale fee would be paid in 2 payments and it looks like some costs would come out of the wholesale fee. Am I right? If a property management company is used, what would that cost the ground partner? How would the marketing costs and methods be decided?

    The positive aspects would be the building of a nice rental portfolio after 10 years or so and the marketing costs paid for by EAC. This would also be good for an older individual who is building a business for his children or grandchildren. 

    How may I get more definitive answers on this?  

    0Reply
  • Vince Mayer
    Wholesaler · Arnold, MO · Member since 2013 · 348 posts · 183 votes
    11y

    @Kevin Yoo

    Whoops! I for got to address Dr. Yoo in the above post.

    0Reply
  • Kevin Yoo
    OP
    San Diego, CA · Member since 2008 · 301 posts · 108 votes
    11y

    @Vince Mayer

    Thanks for asking those questions.

    The first thing I want to say is that everything we suggest is up for negotiations because we do not have all the answers. We have certain general ideas but the devil in the details seems to need constant tweaking as we learn that certain things work and certain things do not.

    One general theme we have is that EAC provides all the money needed to make you successful in your real estate ventures. Another general themes is that this money is not free money but money that needs to be paid back. When you work with us, we think of you as part of our team. It is like one big Community. It is as though it is your self. And if you spent your own money marketing, that money has to come out of your profits on your next deal. So, that is how we work as well and the marketing cost is paid by us but comes out of the profits and, therefore, ultimately it is paid by the deal. 

    Let me address your other points.

    "However, it looks like the best one could do in one year would be about $40,000 if approximately 10 properties were acquired at 65% of ARV."

    If you can find only 10 properties at 65% ARV in one year, then $40K is about what you would make in cash. This obviously does not include the equity you will get as well. This number is perfectly fine with us, but currently we have a partner in North Carolina that is helping us buy 2 to 3 homes a month. He thinks he can do more than that. We will support him and you at any pace you want to work at as long as the deals make sense.

    "One would have to acquire, rehab and manage the properties, which would not be part time. The wholesale fee would be paid in 2 payments and it looks like some costs would come out of the wholesale fee. Am I right? If a property management company is used, what would that cost the ground partner? How would the marketing costs and methods be decided?"

    The wholesale fee would be paid in 2 payments, 1/2 at purchase and 1/2 at rented out, only because we want you to be committed to rehabbing and renting out the property. We have one partner in Indiana who has worked very well with us for about a year. We like him and trust him so much we plan to pay him the wholesale fee completely up front. He asked for this and it was easy for us to agree. No other costs come out of the wholesale fee. 

    If we chose to use PM, then this cost must be included as expenses and reduce everyone's cash flow. We decide whether to use PM on case by case basis. Eventually we want to own 100 to 300 units in one location so that we can make a PM company ourselves. 

    The marketing costs and methods will be decided by you in consultation with the group.

    I hope this helps. I suggest you speak to our current GPs to get their take on their experience on joining the EAC Community. 

    0Reply
  • Kevin Yoo
    OP
    San Diego, CA · Member since 2008 · 301 posts · 108 votes
    11y

    @Jason R.

    Jason asked me this question. "I read through the materials you put together for your Ground Partners and it sounds quite intriguing. One question I have: What is the minimum discount you require after factoring in your all-in costs?"

    It depends on the class of property, A, B, or C.

    For A class property, the minimum discount can be small because you have better tenants and better homes therefore the expenses are lower. So, the minimum discount I would take in an A class property is 20% or so.

    For B class property, the minimum discount I would take is 30% or so. 

    For C class property, because the tenants are not as good and the property is older the CAPEX is higher. I would have a minimum discount of 40%.

    These are mere guidelines and each property needs to be looked at separately and I may take even less discount then outlined her for a property. You have to take Rent % to Purchase Price, ROI for Cash, CAP Rate, and all others into consideration.

    But you can do better than the guidelines here as our partner in Jacksonville, NC is finding B Class homes at 50% discount. We are buying one of those homes a week.

    0Reply
  • Kevin Rizzo
    Contractor · Seymour, CT · Member since 2011 · 58 posts · 1 vote
    11y

    Good Afternoon Mr. Yoo,

    I am very intrigued about your posting and also believe that having a strong partnership with someone is the best way to a strong business.

    I wanted to ask if you would ever consider partnering with someone outside of you current area of interest, as I reside in Connecticut and I am currently looking for a business partner that I can work with to help purchase and renovate single family homes.

    I look forward to hearing from you.

    Kevin Rizzo

    E - [email protected]

    0Reply
  • Kevin Yoo
    OP
    San Diego, CA · Member since 2008 · 301 posts · 108 votes
    11y

    @Kevin Rizzo

    Kevin,

    We are always looking for the diamond in the rough partner. Please call me whenever you can and be happy to talk with you. 

    0Reply
  • Kevin Rizzo
    Contractor · Seymour, CT · Member since 2011 · 58 posts · 1 vote
    11y

    Mr. Yoo,

    Thank you for replying to my message, I will reach out to you on Monday 4/26/15 in the early afternoon to speak with you.

    Kevin Rizzo

    0Reply
  • Helen Kirk
    Rental Property Investor · Auburn, AL · Member since 2015 · 227 posts · 80 votes
    11y

    Hi Mr. Yoo,

    I am very interested in finding and rehabbing properties, and would like to discuss a partnership with you.   I have been searching for properties in the central eastern Alabama area which are distressed, foreclosed, or up for a tax sale.  In fact, I have already found a wonderful property which lies in a historic district close to my location which is just begging to be rehabbed.  I have contacted the owners and they were actually thinking about putting this property up for sale.  The property is vacant and appears to need a major rehab, but would be an absolutely gorgeous two story antebellum style home if fixed up properly.

    I will admit to being new at all of this, but am excited about the prospect, and am willing to do what it takes to make a go of this.  Please let me know if you are interested.  I would rather do my initial rehab with a partner rather than on my own.

    0Reply
  • Kevin Yoo
    OP
    San Diego, CA · Member since 2008 · 301 posts · 108 votes
    11y

    @Helen Kirk

    Thanks for reaching out to me. I do see that you are very green. That does not mean, however, that you are not someone who can become a good Ground Partner for our Community. I will have my virtual assistant Madel Santiago send you all the Partnership documents for us that you MUST read and understand. I will also have her send you a spreadsheet for you to use to present this deal in our weekly EAC Community meeting. 

    I see that you have wonderful attitude about this but I want to warn you not to fall in love with a deal as you seem to be doing with this home. We are more likely than not going to reject your deal not because of your lack of experience but because the numbers are just not going to make sense. The experience of going through this deal, however, will be a great education for you. And having us as your partner will ensure your success. If not us, make sure you get someone. Don't go at it alone. This is a team sport. Get on a great team. Kiss a lot of frogs before you find your prince of a deal.

    0Reply
  • Helen Kirk
    Rental Property Investor · Auburn, AL · Member since 2015 · 227 posts · 80 votes
    11y

    @Kevin Yoo

    Thanks for your reply.  I have been trying to educate myself on rehabs and rentals, and I now see that this home may need a lot more repairs than would be feasible for my first rehab.  The owners must have other plans for it as well, since they seem to be making repairs to it themselves.  I will monitor it however, because it has captured my interest.

    In the meantime, I continue to look for other properties, and have found another one which is in being offered as a short sale.  I've walked through this one, and most of the rehab appears to be cosmetic with the possible exception of a leak in the roof.  I'll have to get an appraisal before going forward on it, but the bank wants 41K for it in an area where the comps average 85K.  It is a 3br, 1 ba brick home in a neighborhood of mainly rental properties.   I could finance the majority of this property, but would need to take out a loan for the rehab portion.

    There are a few other homes in the area that may be good values that I'm also checking out that have a higher value than what I would be able to finance with cash.

    0Reply
  • Kevin Yoo
    OP
    San Diego, CA · Member since 2008 · 301 posts · 108 votes
    11y

    @Helen Kirk

    Education is very important. EAC Community will give you that but you have to thoroughly engage yourself with us. No silver spoon but bunch of generous, smart, active real estate investors in our Community.

    The other property seems to have some promise. I admire you trying to finance it yourself. But OPM is as important as education in your success as RE Investor. EAC Community will give you that but you have to thoroughly engage yourself with us. No free money, instead very expensive money but very easy money.

    Let me know if you need any help. Good luck.

    0Reply
  • Kevin Yoo
    OP
    San Diego, CA · Member since 2008 · 301 posts · 108 votes
    11y

    Hi BP Investors,

    Here is the link to the documents for Partnership, you view it via Dropbox or visit our Website:

    Dropbox:

    https://www.dropbox.com/s/pz67zjprjgdff23/Buy%20an...

    https://www.dropbox.com/s/bcoj9xcex2dadi7/Fix%20an...

    https://www.dropbox.com/s/tfw1t55hnseg5ck/EAC%20Co...

    Website:

    http://eacinvestments.com/for-potential-ground-par...

    There are separate tabs for Buy and Hold and Fix and Flip.

    0Reply
  • Ramon Jenkins
    Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    11y

    @Kevin Yoo  have any biggerpockets recent successful partnerships ?

    0Reply
  • Kevin Yoo
    OP
    San Diego, CA · Member since 2008 · 301 posts · 108 votes
    11y

    @Ramon Jenkins

    Many people responded to our request and I spoke with just about all of them. However, so far we have only found one potential Ground Partner in Orlando, Florida with whom we bought a 4-plex and a duplex. These properties have just been rehabbed and in the process of being rented out. As we are early in the process of vetting these properties, this market, and this GP, we are not yet fully committed.

    The reason why we have only found one GP is because the people that responded including those on this string of posts initially show a lot of interest, have a few good conversations with us, and sometimes exchange multiple emails, but then they simply disappear. I will have to admit that our program is not for everyone and our response or lack of response to some of the inquiries may have caused some of the interested parties to disappear. However, it is without a doubt that finding a good partner is as hard as finding a good property. You have to kiss a lot of frogs. And you have to be persistent. Those who really want to succeed with us, should never give up. But too many do.

    Of the current active GPs in the EAC Community, many of them have come from BP. We are currently looking at several guys who found us through this post and who keep pursuing us. And I keep getting inquires here and there from this post. I will never stop looking for talent. Finding an excellent partner is more important to EAC than finding an excellent deal. 

    0Reply
  • Ramon Jenkins
    Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    11y

    I understand both points of views:

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    “but then they simply disappear “ and “have to kiss a lot of frogs “

    0Reply
  • James Turner
    Investor · Chicago, IL · Member since 2014 · 42 posts · 8 votes
    11y

    Hi @Kevin Yoo

    I've been doing wholesaling in Chicago and recently expanded back to South Bend since its my hometown. I'll be sending you an email shortly, as I'm looking to partner on some rehab projects and/or wholesale some deals.

    Looking forward to hearing from you.

    Thanks,
    James

    0Reply
  • Wendell De Guzman
    Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
    11y
    Originally posted by @Kevin Yoo:

    @Helen Kirk

     No free money, instead very expensive money but very easy money.

    Let me know if you need any help. Good luck.

     I looked at your fix-n-flip partnership details. This is indeed super expensive money - 36% interest p.a. plus 40% of the whatever left as profit. Wow. Your GP won't make any money. No wonder you have no takers. 

    We charge 12% p.a., 4 points plus 25% of the profit - way cheaper than your program.

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